HCAD 760 MIDTERM EXAM SOLUTION MANUAL FULLY SOLVED LATEST VERSION 2025
definition of healthcare finance depends on the context of: - Answers 1) policymaker or manager
2) type of healthcare organization
the practice of finance, including both accounting & financial management, within health services
(provider) organizations - Answers health care finance
measurement, in financial (dollar) terms, of events that reflect the resources, operations, & financing of
an organization; external reports, taxes - Answers accounting
theory, concepts, & tools necessary to help managers make better financial decisions; internal, improves
organization's opportunities & efficiency - Answers financial management
accounting & financial mgmt independent? - Answers No, both capture, measure, & use data, but with
different purpose
characteristics of business: - Answers 1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
goals of business (for profit) - Answers max shareholder return
goals of pure charity - Answers max community or mission benefit
to plan for, acquire, & utilize resources to maximize the efficiency (& hence value) of the enterprise -
Answers primary role of finance
finance activities - Answers 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
GAAP - Answers Generally Accepted Accounting Principles
, Four C's (summarize finance activities) - Answers 1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
finance dept usually organized as follows: - Answers CFO (VP-Finance)
Comptroller
Tresurer
handles budgeting & reporting & payables & receivables mgmt - Answers comptroller
handles acquisition & employment of capital, debt mgmt, & financial risk mgmt - Answers treasurer
__________________________ decreases possibility of stealing - Answers segregation of duties
health service settings - Answers hospital (inpatient)
ambulatory (outpatient)
long-term care
integrated delivery systems
Mgmt challenges - ACHE - Answers financial concerns
medicaid
medicare
indigent care & bad debt losses
ACHE - Answers American College of Healthcare Executives
HFMA - Answers Healthcare Financial Mgmt Organization
Mgmt challenges - HFMA - Answers balancing financial & quality issues
revenue cycle improvement
access to capital (financing)
3 major categories of business organization (legal forms of businesses) - Answers 1) proprietorship (sole
proprietorship)
2) partnership
definition of healthcare finance depends on the context of: - Answers 1) policymaker or manager
2) type of healthcare organization
the practice of finance, including both accounting & financial management, within health services
(provider) organizations - Answers health care finance
measurement, in financial (dollar) terms, of events that reflect the resources, operations, & financing of
an organization; external reports, taxes - Answers accounting
theory, concepts, & tools necessary to help managers make better financial decisions; internal, improves
organization's opportunities & efficiency - Answers financial management
accounting & financial mgmt independent? - Answers No, both capture, measure, & use data, but with
different purpose
characteristics of business: - Answers 1) obtains financing from marketplace
2) uses funds to buy assets
3) operates the assets to provide goods or services
4) sells goods or services to create revenue
goals of business (for profit) - Answers max shareholder return
goals of pure charity - Answers max community or mission benefit
to plan for, acquire, & utilize resources to maximize the efficiency (& hence value) of the enterprise -
Answers primary role of finance
finance activities - Answers 1) planning & budgeting
2) financial reporting
3) capital investment decisions
4) financing decisions
5) working capital management
6) contract management
7) financial risk management
GAAP - Answers Generally Accepted Accounting Principles
, Four C's (summarize finance activities) - Answers 1) Cost minimization
2) Cash sufficiency
3) Capital access
4) Control of financial resources
finance dept usually organized as follows: - Answers CFO (VP-Finance)
Comptroller
Tresurer
handles budgeting & reporting & payables & receivables mgmt - Answers comptroller
handles acquisition & employment of capital, debt mgmt, & financial risk mgmt - Answers treasurer
__________________________ decreases possibility of stealing - Answers segregation of duties
health service settings - Answers hospital (inpatient)
ambulatory (outpatient)
long-term care
integrated delivery systems
Mgmt challenges - ACHE - Answers financial concerns
medicaid
medicare
indigent care & bad debt losses
ACHE - Answers American College of Healthcare Executives
HFMA - Answers Healthcare Financial Mgmt Organization
Mgmt challenges - HFMA - Answers balancing financial & quality issues
revenue cycle improvement
access to capital (financing)
3 major categories of business organization (legal forms of businesses) - Answers 1) proprietorship (sole
proprietorship)
2) partnership
